Evaluating Relative Efficiency of Major Cargo Ports in the Middle East: The Integrated DEA-AP Approach
Subject Areas : Business ManagementAzita Hajizadeh 1 , Seyed Nasser Saeidi 2 , Amer Kaabi 3 , Homayoun Yousefi 4 , Mostafa Zaredoost 5
1 - Master of Science (MSc), Faculty of Economics and Management, Marine Science and Technology University of Khorramshahr
2 - Assistant Professor, Faculty of Economics and Management, Marine Science and Technology University of Khorramshahr
3 - Assistant Professor, Faculty of Marine Engineering, Marine Science and Technology University of Khorramshahr
4 - Assistant Professor, Faculty of Economics and Management, Marine Science and Technology University of
5 - Instructor, Faculty, Marine Economics and Management, Marine Science and Technology University of Khorramshahr
Keywords: efficiency analysis, Middle East, cargo ports, data envelopment, maritime transportation,
Abstract :
The aim of this study was to evaluate the relative efficiency of major cargo ports in Middle East over the three-year period of 2011-2013. The research data were collected from scientific resources and input and output data from statistical yearbook of the Iranian ports, maritime organization and formal website of each foreignport. Initially, the relative efficiency of ports was evaluated via two basic model of DEA-technique namely CCR-O and BCC-O and the ports were ranked accordingly using the 100% efficiency Anderson-peterson method. Based on the results of output- oriented CCR modelthatrepresents overall technical efficiency, Khorfakkan Port showed the highest and Bandar ImamKhomeini the lowest coefficient of efficiency during the given period. Based on the results of output- oriented BCC modelthatrepresents pure technical efficiency, Bushehr, Jebel Ali, KhorfakkanandAlexandria were found to have the highestandBandar ImamKhomeini the lowest coefficient of efficiency. Apart from Khorfakkan and Alexandriathat were underconstantreturns to scale, other ports were under variablereturns to scale. The scrutinized ports revealed an average of 54.3%, in technical efficiency and an average of 73% in pure technical efficiency during 2011-2013.
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Al-Eraqi, A.S., Mustafa, A., & Khader, A. T.(2010), An Extended DEA Windows Analysis: Middle East and East African Seaports. Journal of Economic Studies,37(2), 208-218.
Anderson, P., & Petersen, N.C.(1993), A Procedure for Ranking Efficient Units in Data Envelopment Analysis. Management Science, 39(10), 1261-1264.
Banker, R.D., Charnes. A., & Cooper, W.W.(1984), Some Models for Estimating Technical and Scale Efficiencies in Data Envelopment Analysis. Management Science Sept ,17(25), 1078- 1092.
Carine, A.C.F.(2015), Analyzing the Operational Efficiency of Container Ports in Sub-Saharan Africa. Open Journal of Social Sciences, 3(17), 10-17.
Charnes A., Cooper, W. W., & Rhodes, E.(1978), Measuring the Efficiency of Decision Making Units. Eur J Oper Res, 12(56), 429-444.
Cooper, W. W., Seiford, L. M., & Tone, K. (2000), Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software. Kluwer Academic, 13(55), 220-224.
Cullinane, K., Ji, P., & Wang, T.(2004), An Application of DEA Windows Analysis to Container Port Production.Review of Network Economics , 3(2),184-206.
Cullinane, K. P. B., Ji, P., Wang, T. F., & Song, D. W.(2006), The Technical Efficiency of Container Ports: Comparing Data Envelopment Analysis and Stochastic Frontier Analysis. Transportation Research Part A, 40(12), 354-374.
Fare R., Grosskopf, S., Norris, M., & Zhang, Z.(1994), Productivity Growth, Technical Progress and Efficiency Change in Industrialized Countries. Am Econ Rev, 12(84), 66-83.
Forsund F. R., Sarafoglou, N.(2002), On the Origins of Data Envelopment Analysis, J Prod Anal, 5(17), 23-40.
Hung, S. W., Lu, W. M., & Wang, T. P.(2010), Benchmarking The Operating Efficiency of Asia Container Ports. European Journal of Operational Research, 203(3), 706-713.
Itoh, H.(2002), Efficiency Changes at Major Container Portsin Japan: A Window Application of Data EnvelopmentAnalysis. Review of Urban and Regional DevelopmenStudies, 14(2), 133-152.
Kaisar, E. I., Pathomsiri, S., & Haghani, A.(2006), Efficiency Measurement of US Ports Using Data Envelopment Analysis. In National Urban Freight Conference.
Kiani Moghadam M., Jafarzadeh Kenari, M., & Bakhshi zadeh, A.(2013), Relative Efficiency Appraisalof Iranian Ports Using Data Envelopment Analysis (DEA) Technique. Joc, 4(13), 73-83, (In Persian).
Lee, H. S., Chou, M. T., & Kuo, S. G.(2005), Evaluating Port Efficiency in Asia Pacific Region with Recursive Data Envelopment Analysis. Journal of the Eastern Asia Society for Transportation Studies, 6(2), 544- 559.
Legato, P., Canonaco, P., M., & Mazza, R.(2009), Yard Crane Management by Simulation and Optimization. Maritime Economics & Logistics, 11(3), 36-57.
Lin, L.C., & Tseng, C.C.(2007), Operational Performance Evaluation of Major Container Ports in the Asia–Pacific Region. Maritime Policy and Management, 34(6), 535-551.
Lu, B., Park, N. K., & Huo,Y.(2015), The Evaluation of Operational Efficiency of the World’s Leading Container Seaports. Journal of Coastal Research,15(73), 248-254.
Martinez-Budria, E., Diaz-Armas, R., Navarro-Ibanez, M., & Ravelo-Mesa, T.(1999), A Study of the Efficiency ofSpanish Port Authorities Using Data Envelopment Analysis. International Journal of Transport Economics, 26(4),237-253.
Munisamy, S., & Jun, O.(2013), Efficiency of Latin American Container Seaports using DEA. Proceedings of 3rd Asia-Pacific Business Research Conference.
Notteboom, T., Coeck, C., & Van Den Broeck, J. (2000), Measuring and Explaining the Relative Efficiency of Container Terminals by Means of Bayesian Stochastic Frontier Models. International Journal of Maritime Economics, 2(12), 83-106.
Pierce, J.(1996), Efficiency Progress in the Newsothwale Government. Available at: www.treesury.nsw.gov.edu.
Rahbar, A., Esmaeili, A., & Dehmarde, N.(2012), Calculation of Efficiency and Efficiency Versus Scale in the Milk Industry of Kerman Province. Journal of Planning and Budget, 4(17), 145-159, (In Persian).
Saeidi, N., & Moradpoor, K. (2013), The Role of Ports in the Process of Economic Development of Countries. Bandar and Sea Monthly, 28(66), 78-82, (In Persian).
So, S.H., Kim, J.J., Cho, J., & Kim, D.K.(2007), Efficiency Analysis and Ranking of Major Container Ports in Northeast Asia: An Application of Data Envelopment Analysis. International Review of Business Research Papers, 3(2), 486-503.
Valentine, V.F., & Gray, R.(2001), The Measurement of Port Efficiency Using Data Envelopment Analysis. Proceedingsof the 9th World Conference on Transport Research.
Witzel, M.(2002), A Short History of Efficiency. Business Strategy Review, 5(13), 38-47.
_||_Adel, A., & Gholamrezaei, D.(2005), Ranking of Provinces of the Country with Data Envelopment Analysis Approach. Iranian Economic Research, 8(12), 153-174, (In Persian).
Al-Eraqi, A.S., Mustafa, A., & Khader, A. T.(2010), An Extended DEA Windows Analysis: Middle East and East African Seaports. Journal of Economic Studies,37(2), 208-218.
Anderson, P., & Petersen, N.C.(1993), A Procedure for Ranking Efficient Units in Data Envelopment Analysis. Management Science, 39(10), 1261-1264.
Banker, R.D., Charnes. A., & Cooper, W.W.(1984), Some Models for Estimating Technical and Scale Efficiencies in Data Envelopment Analysis. Management Science Sept ,17(25), 1078- 1092.
Carine, A.C.F.(2015), Analyzing the Operational Efficiency of Container Ports in Sub-Saharan Africa. Open Journal of Social Sciences, 3(17), 10-17.
Charnes A., Cooper, W. W., & Rhodes, E.(1978), Measuring the Efficiency of Decision Making Units. Eur J Oper Res, 12(56), 429-444.
Cooper, W. W., Seiford, L. M., & Tone, K. (2000), Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software. Kluwer Academic, 13(55), 220-224.
Cullinane, K., Ji, P., & Wang, T.(2004), An Application of DEA Windows Analysis to Container Port Production.Review of Network Economics , 3(2),184-206.
Cullinane, K. P. B., Ji, P., Wang, T. F., & Song, D. W.(2006), The Technical Efficiency of Container Ports: Comparing Data Envelopment Analysis and Stochastic Frontier Analysis. Transportation Research Part A, 40(12), 354-374.
Fare R., Grosskopf, S., Norris, M., & Zhang, Z.(1994), Productivity Growth, Technical Progress and Efficiency Change in Industrialized Countries. Am Econ Rev, 12(84), 66-83.
Forsund F. R., Sarafoglou, N.(2002), On the Origins of Data Envelopment Analysis, J Prod Anal, 5(17), 23-40.
Hung, S. W., Lu, W. M., & Wang, T. P.(2010), Benchmarking The Operating Efficiency of Asia Container Ports. European Journal of Operational Research, 203(3), 706-713.
Itoh, H.(2002), Efficiency Changes at Major Container Portsin Japan: A Window Application of Data EnvelopmentAnalysis. Review of Urban and Regional DevelopmenStudies, 14(2), 133-152.
Kaisar, E. I., Pathomsiri, S., & Haghani, A.(2006), Efficiency Measurement of US Ports Using Data Envelopment Analysis. In National Urban Freight Conference.
Kiani Moghadam M., Jafarzadeh Kenari, M., & Bakhshi zadeh, A.(2013), Relative Efficiency Appraisalof Iranian Ports Using Data Envelopment Analysis (DEA) Technique. Joc, 4(13), 73-83, (In Persian).
Lee, H. S., Chou, M. T., & Kuo, S. G.(2005), Evaluating Port Efficiency in Asia Pacific Region with Recursive Data Envelopment Analysis. Journal of the Eastern Asia Society for Transportation Studies, 6(2), 544- 559.
Legato, P., Canonaco, P., M., & Mazza, R.(2009), Yard Crane Management by Simulation and Optimization. Maritime Economics & Logistics, 11(3), 36-57.
Lin, L.C., & Tseng, C.C.(2007), Operational Performance Evaluation of Major Container Ports in the Asia–Pacific Region. Maritime Policy and Management, 34(6), 535-551.
Lu, B., Park, N. K., & Huo,Y.(2015), The Evaluation of Operational Efficiency of the World’s Leading Container Seaports. Journal of Coastal Research,15(73), 248-254.
Martinez-Budria, E., Diaz-Armas, R., Navarro-Ibanez, M., & Ravelo-Mesa, T.(1999), A Study of the Efficiency ofSpanish Port Authorities Using Data Envelopment Analysis. International Journal of Transport Economics, 26(4),237-253.
Munisamy, S., & Jun, O.(2013), Efficiency of Latin American Container Seaports using DEA. Proceedings of 3rd Asia-Pacific Business Research Conference.
Notteboom, T., Coeck, C., & Van Den Broeck, J. (2000), Measuring and Explaining the Relative Efficiency of Container Terminals by Means of Bayesian Stochastic Frontier Models. International Journal of Maritime Economics, 2(12), 83-106.
Pierce, J.(1996), Efficiency Progress in the Newsothwale Government. Available at: www.treesury.nsw.gov.edu.
Rahbar, A., Esmaeili, A., & Dehmarde, N.(2012), Calculation of Efficiency and Efficiency Versus Scale in the Milk Industry of Kerman Province. Journal of Planning and Budget, 4(17), 145-159, (In Persian).
Saeidi, N., & Moradpoor, K. (2013), The Role of Ports in the Process of Economic Development of Countries. Bandar and Sea Monthly, 28(66), 78-82, (In Persian).
So, S.H., Kim, J.J., Cho, J., & Kim, D.K.(2007), Efficiency Analysis and Ranking of Major Container Ports in Northeast Asia: An Application of Data Envelopment Analysis. International Review of Business Research Papers, 3(2), 486-503.
Valentine, V.F., & Gray, R.(2001), The Measurement of Port Efficiency Using Data Envelopment Analysis. Proceedingsof the 9th World Conference on Transport Research.
Witzel, M.(2002), A Short History of Efficiency. Business Strategy Review, 5(13), 38-47.
